Friday, January 15, 2010

McCollum Responsible For Repealing Glass–Steagall Act

SunSentinel.com columnist Stephen L. Goldstein takes Bill McCollum to the woodshed. The column pointed out McCollum for a nonprofit organization with a sleazy downpayment program. The orgazation's downplayment program was later made illegal by Congressional legislation. Even more damning is McCollum was a House co-sponsored of the Gramm-Leach-Bliley Act. The bill allowed insurance comanies along with commercial and investment banks to merge. The three were made into separate entities under the Glass–Steagall Act. Carter Glass and Henry B. Steagall sponsored the legislation in response to the financial collapse of Wall Street.

The reason for the Glass–Steagall Act is for investment banks not to make high risk investments with the savings or insurance policies of customers. Bankers turned naked credit default swaps into Vegas-style betting. The banks fell and the financial faith of America was put at risk. This is the kind of economic nonsense McCollum backs.